Directorate-General for Trade

South Africa

South Africa is the EU's largest trading partner in Africa. Although it is a member of the ACP group of countries it is by far the strongest of sub-Saharan Africa's economies, and has an FTA with the EU. South Africa's exports to the EU are growing and the composition of those exports is becoming more diverse. South Africa is gradually moving from mainly commodity-based products to a more diversified export profile that includes manufactured products.

South Africa is Europe's largest trading partner in Africa

Trade in goods

• EU good exports to South Africa 2008: €20,215 million
• EU goods imports from South Africa 2008: €22,157 million

South Africa's primary exports to the EU are coal (14%), diamonds (14%) and mechanical machinery (11%). EU exports to South Africa are dominated by mechanical machinery (25%), vehicles (16%) and electrical machinery (13%).

Trade in services

• EU services exports to South Africa 2007: €5,704 million
• EU services imports from South Africa 2007: €4,321 million

Foreign Direct Investment

• EU investment flows to South Africa 2007: €3.5 billion
• South Africa investment flows to EU 2007: €2.6 billion
• EU investment stocks in South Africa 2007: €44 billion
• South Africa investment stocks in EU 2007: €7.6 billion

More statistics on South Africa

The EU-South Africa FTA

South Africa's trade relations and development co-operation with the European Union (EU) are governed by the Trade, Development and Co-operation Agreement (TDCA) , which was signed in Pretoria on 11 October 1999. The TDCA aims, among other things, to establish a free trade area over a 12 year period covering 90% of bilateral trade. The implementation of this agreement is overseen by the Joint Co-operation Council which also functions as a forum for overall dialogue between the EU and South Africa. The most recent meeting was the 9th Joint Cooperation Council held in Cape Town on 3-4 November 2008.

Under the TDCA, South Africa has seen its exports to the EU rise from around €15.8 billion in 2004 to almost €22.2 billion in 2008. Total trade volumes have risen by a third since 2004 (from around €31.8 billion in 2004 to almost €42.4 billion in 2008).

South Africa and the ACP

South Africa, while part of the ACP group of countries, was not party to the same preferential trade arrangements granted to the ACP under the Cotonou Agreement (2000). For the Economic Partnership Agreements (EPAs) which are the trade pillar of the Cotonou Agreement, South Africa joined the negotiations with the Southern African Development Community or SADC EPA group in February 2007. While 5 of the 7 countries in the SADC Group have initialled and are close to signing an interim or "stepping stone" EPA, South Africa has opted not to join at this stage as its trade relations with the EU are governed by the TDCA. However, it has stated that it is in favour of joining a full EPA in the future and will continue to participate in negotiations with the goal of increasing regional integration and boosting competitiveness of the SADC economies.

While a comparatively developed country, there are large parts of the population who live in poverty. The EU is by far South Africa’s most important development partner, providing 70% of all external assistance funds.